Nvidia’s results, Tesla’s European sales, Japan trade - what’s moving markets
On Thursday, H.C. Wainwright reaffirmed its Buy rating and $30.00 price target for Olema Pharmaceuticals (NASDAQ:OLMA), representing significant upside potential from the current price of $4.26. According to InvestingPro data, analyst targets range from $20 to $30, while the stock has declined over 70% in the past year. The firm’s analyst highlighted the recent update from the company regarding its Phase 2 study of palazestrant combined with ribociclib in treating ER+/HER2- metastatic breast cancer. The study showed a median progression-free survival (PFS) of 13.8 months for all participants and 13.1 months for those previously treated with CDK4/6 inhibitors and endocrine therapy. While the clinical results appear promising, InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 7.1 and holds more cash than debt on its balance sheet, crucial factors for supporting ongoing clinical development.
Olema Pharmaceuticals announced on March 5 through an 8-K filing that the updated data included results from patients who were either naive or experienced with CDK4/6 inhibitors. The findings, which were derived from 56 patients at a 120 mg dosage of palazestrant, suggest a potentially best-in-class performance relative to other oral SERD and CDK4/6 inhibitor combination studies.
The analyst expressed optimism about the data, noting that 24 patients remained in the study as of the February 18, 2025, data cut-off. This could indicate a possible upward revision of the median PFS if these patients continue to demonstrate longer survival. With a market capitalization of $316 million and trading near its 52-week low, InvestingPro analysis suggests the stock is currently undervalued, though investors should note that 12 additional ProTips are available for deeper analysis. The reported PFS surpasses the 8-9 month range observed in similar studies from competitors, reinforcing the potential of the palazestrant plus ribociclib combination.
The results also show promise across different patient subtypes, including those with ESR1 mutant and ESR1 wild-type, which supports the possibility of a first-line combination approach. Olema Pharmaceuticals plans to initiate a Phase 3 trial in 2025.
Furthermore, H.C. Wainwright anticipates an updated presentation of the palazestrant and ribociclib data at a medical conference later in the year. The firm’s reiteration of the Buy rating and price target reflects confidence in the drug’s efficacy and its prospects in the ongoing clinical trials, though investors should note the company’s beta of 2.12 indicates higher volatility compared to the broader market.
In other recent news, Olema Pharmaceuticals disclosed an unregistered exchange of equity securities in a filing with the SEC. The transaction involves exchanging 6,070,000 shares of common stock for pre-funded warrants with Bain Capital Life Sciences Opportunities IV, L.P., entities affiliated with Paradigm BioCapital International Fund Ltd., and BVF Partners L.P. These warrants have an exercise price of $0.0001 per share and are immediately exercisable. The exchange is expected to close soon, with estimated outstanding shares of common stock reaching 68,333,065 post-transaction.
Additionally, H.C. Wainwright reaffirmed its Buy rating and $30.00 price target for Olema Pharmaceuticals following the release of updated clinical study data. The company presented findings from its Phase 1b/2 study of palazestrant combined with ribociclib for treating ER+/HER2- metastatic breast cancer. The study highlighted that palazestrant did not affect ribociclib exposure and vice versa, which is notable as other treatments have required dosage adjustments. These developments reflect ongoing confidence in Olema Pharmaceuticals’ prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.